The National Stock Exchange of India Limited (NSE) has announced a revision in the market lot size of derivative contracts on key indices, effective October 28, 2025 (EOD). This change is in line with the SEBI guidelines for periodic revision of lot sizes for derivative contracts.
Key Highlights of the Circular
Revised Market Lots
As per the circular, the following changes have been made:
| Underlying Index | Symbol | Present Market Lot | Revised Market Lot |
|---|---|---|---|
| Nifty 50 | NIFTY | 75 | 65 |
| Nifty Bank | BANKNIFTY | 35 | 30 |
| Nifty Financial Services | FINNIFTY | 65 | 60 |
| Nifty Mid Select | MIDCPNIFTY | 140 | 120 |
👉 The lot size of Nifty Next 50 (NIFTYNXT50) remains unchanged at 25.
Important Points to Note
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The revision is based on the average closing price of the underlying index during September 2025.
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These changes will come into effect from October 28, 2025 (EOD).
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The existing lot size will continue to be applicable for weekly and monthly contracts till December 30, 2025.
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From December 30, 2025 (EOD), all quarterly and half-yearly contracts will also reflect the revised lot sizes.
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The day spread order book will not be available for combination contracts involving the transition months (Nov 2025 – Jan 2026, Dec 2025 – Jan 2026, and Dec 2025 – Feb 2026).
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NSE has advised members to inform their clients who hold positions or plan to take new positions in longer-duration contracts about the upcoming changes.
Why This Revision Matters
Derivative contracts’ lot sizes are revised periodically to maintain uniform contract value and ensure that the notional value of one contract remains within a practical trading range. These revisions help in:
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Maintaining Liquidity – Keeping lot sizes manageable encourages participation from traders and investors.
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Risk Management – Adjustments prevent contract values from becoming too large or too small relative to the underlying index.
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Market Efficiency – Periodic revisions align with SEBI’s framework to standardize derivative contracts.
Impact on Traders and Investors
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Retail Traders: Smaller lot sizes (e.g., Nifty 50 from 75 to 65) reduce margin requirements, making participation easier.
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Institutional Investors: Adjustments help maintain hedging efficiency by aligning contract values closer to actual portfolio exposure.
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Option Sellers/Writers: They will need to re-calculate risk, margin, and premium adjustments as per the new lot sizes.